Temporary factors contribute to third-quarter decline in Permian output
- Targa Resources expects Permian Basin production volumes to continue rising
- Third-quarter decline in production attributed to temporary factors
- Delaware portion of the Permian Basin saw the largest production drop
- Company confident in long-term growth of Permian volumes
- Q3 Permian Basin NGL volumes up 28% from the same period last year
- Targa completed expansion projects at Greenwood processing plant and Galena Park LPG export terminal
- Q3 export volumes from Galena Park up 27% year to year
- Targa reported third-quarter net income of $220 million, up 14% from Q3 2022
Targa Resources executives have expressed confidence in the long-term growth of production volumes from the Permian Basin, despite a decline in the third quarter. The company attributed the dip to temporary factors such as a shift of natural gas to a third-party plant, delays in adding new compression, and severe heat. The decline in production was mainly seen in the Delaware portion of the Permian Basin, while the Midland volumes partially offset the drop. Targa remains optimistic about the future growth of Permian volumes, with Q3 NGL volumes up 28% from the same period last year. The company also completed expansion projects at its Greenwood processing plant and Galena Park LPG export terminal, indicating positive momentum in the market. Q3 export volumes from Galena Park increased by 27% year to year. Targa reported a third-quarter net income of $220 million, a 14% increase from Q3 2022.
Factuality Level: 8
Factuality Justification: The article provides specific data and quotes from Targa Resources executives to support their claims about the expected rise in production volumes from the Permian Basin. The article also includes information about the reasons for the third-quarter decline in production and the actions taken by Targa to address the issue. Overall, the article presents factual information and relies on statements from company officials.
Noise Level: 7
Noise Justification: The article provides information on the production volumes from the Permian Basin and the reasons for the third-quarter decline. It includes statements from Targa executives and discusses the factors that contributed to the decline. However, the article lacks scientific rigor and intellectual honesty as it does not provide evidence or data to support the claims made by the executives. It also does not explore the consequences of the production decline on those who bear the risks. Overall, the article stays on topic and provides some insights into the Permian Basin production, but it could benefit from more evidence-based analysis.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information on the production volumes and financial results of Targa Resources in the Permian Basin. This information may be of interest to investors and analysts in the energy sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article does not mention any extreme events or their impacts.
Public Companies: Targa Resources (TRGP)
Key People: Matt Meloy (Chief Executive), Scott Pryor (President of Logistics and Transportation)
Reported publicly:
www.marketwatch.com 
